FINAL REPORT

Feasibility Study of Laguna Lakeshore

Expressway- Dike Project (LLEDP)

CHAPTER 1
INTRODUCTION
1.1

GENERAL
This report presents the results of the different study activities undertaken for determining the
feasibility of the proposed Laguna Lakeshore Expressway-Dike Project (LLEDP). The
scope of the feasibility study includes upgrading and validation of the previous Business Case
studies of the same Project but under the title of PPP Projects, Package I.
Further, the feasibility study of the proposed Project has included a reclamation component,
which is envisioned to be a revenue generating development that will supplement the financial
requirement of the expressway project. The results of the previous Business Case Studies
recommend the provision of Government Subsidy to make the implementation and operation of
the expressway viable from the commercial standpoint. This development proposal is the
DPWHs proactive response to the recommendation of the Business Case Studies and put into
action the Governments policy to lessen its financial exposure in privately financed projects
and utilize its limited resources in more public service oriented endeavors. Through this study,
the DPWH will explore the potential of integrating a land development component into the
infrastructure project, the results of which will be used as reference in pursuing its intention for
the viable implementation of the Project.
Likewise, the proposed Project will provide measures and solution to the deteriorating
condition of the Laguna Lake shoreland areas, which are usually affected by floods during the
yearly rainy seasons. Flooding along affected areas lasts from one (1) week to more than two
(2) months forcing affected many residents to vacate their houses until the floodwater and the
lake water subside. The proposed Project will also help ease projected traffic in the area.

1.2

BACKGROUND
Upon the request of the Department of Public Works and Highways (DPWH), the Advancing
Philippine Competitiveness (COMPETE) Project funded by the United States Agency for
International Development (USAID) engaged Consulting firms to provide Consulting
Services for the Laguna Lakeshore Expressway-Dike Project (hereinafter called the
Project). Figure 1.1 presents the Location Map of the Project.
The Project aims to provide a high-standard highway-cum-dike that will facilitate traffic flow
and mitigate flooding in the western coastal communities along Laguna Lake, from
Bicutan/Taguig in Metro Manila through Calamba to the Los Baos/Bay boundary in Laguna.
The Project is intended to be implemented under Public-Private Partnership (PPP) schemes.
The expressway will be under the Build- Transfer- Operate (BTO) modality, while the
reclamation component will be under the Build- Own- Operate (BOO) modality.
The Project will serve fast growing urban areas in southern Metro Manila towards Laguna,
Batangas and Quezon, marked by intensive residential, commercial, and industrial land uses.
Based on the traffic study conducted for the 2012 Business Case of the Laguna Lakeshore
Expressway- Dike and Calamba- Los Baos Expressway, the north-south transport corridor in
the area, consisting mainly of the South Luzon Expressway (SLEX) and the Manila South
Road, is heavily travelled, with a total daily traffic of about 275,000 vehicles at Alabang and
about 190,000 vehicles at Calamba, while the Calamba-Los Baos Road carries around 50,000
vehicles a day.

JF Cancio& Associates
in Assoc. with FDCCE&A, CO.&PROCONSULT ENGINEERS, CO.

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FINAL REPORT

Feasibility Study of Laguna Lakeshore

Expressway- Dike Project (LLEDP)

FIGURE 1.1, Location Map

The western coastal communities along Laguna Lake are vulnerable to flooding (in some
places, neck-deep) triggered by continuous and intense rains and typhoons during the
monsoon season - e.g., Typhoon Ondoy in 2009, Habagat in 2012 and 2013, and most
recently Typhoon Maring in August 2013 - due to the abnormal and prolonged rise in the
level of Laguna Lake coupled with inadequate or clogged inland drainage and channels.
These have wrought considerable damage to property and interrupted transportation, business,
government, educational and institutional operations in the affected communities and, as in
the case of typhoon Maring, necessitated the concerned Local Government Units (LGUs) to
declare a state of calamity in their respective areas.
This situation has prompted the DPWH to place high priority on the construction of the LLED
to provide a high capacity transport facility and reduce flooding along the western urban
corridor of Laguna Lake. This Project is consistent with both the 2010 DPWH High Standard
Highway Network Development Plan and the 2012 Master Plan for Flood Management in
Metro Manila and Surrounding Areas. Moreover, during the visit of President Benigno S.
Aquino III on August 22, 2013 in the flood-affected areas along Laguna Lake, he announced
the urgent implementation of the Project.
As the Project is to be pursued through PPP, it also conforms to the Government strategy to
enlist the participation of the private sector in the financing, design, construction, operation
and maintenance of priority infrastructure projects.
The DPWH, through a consulting group - J.F. Cancio and Associates in association with
Proconsult Engineers Co. and FDC Consulting Engineers & Architects Company - completed
a PPP Business Case Study for the Project in 2012. The Study indicated that the Project is
technically, economically and financially meritorious. Given the above circumstances,
however, the DPWH finds it necessary to enhance the Business Case Study to a full- blown
feasibility study, addressing the concerns mentioned above, in order to produce a complete
JF Cancio& Associates
in Assoc. with FDCCE&A, CO.&PROCONSULT ENGINEERS, CO.

1-2

FINAL REPORT

Project Proposal that complies with the requirements of the National Economic and
Development Authority (NEDA)-Investment Coordination Committee (ICC) and to prepare
the necessary bidding documents and other requisites for the PPP procurement and
implementation of the Project.
To undertake the feasibility study, the DPWH, with the assistance of the USAID- COMPETE
Project, engaged the same consulting group that conducted the Business Case Study of the
Project.
Based on the outputs of the Consulting Services, as well as the results of the previous
Business Case Study, DPWH submits the Project Evaluation Forms (PEF) and other
documentary requirements, to the NEDA-ICC for the latters appraisal and approval.
1.3

PROJECT DESCRIPTION
The proposed Laguna Lakeshore Expressway-Dike Project (LLEDP) consists of the following
components:
1.

2.
1.3.1

Expressway- Dike Component

Reclamation Component

Expressway- Dike
The Laguna Lakeshore Expressway Dike is a high- speed highway facility that will run from
the proposed terminus of C6 Phase 2 Expressway Project in Bicutan, Taguig, through
Calamba City, to its southern terminus at Los Banos at its boundary with Bay in Laguna. It
has a length of 46.95 kilometers, to be installed offshore at an average of 500 meters from the
shoreline of Laguna Lake, farthest along the cove areas while maintaining an almost straight
alignment and complying with high standard highway. The 6-lane expressway is intended to
relieve the heavily travelled Bicutan-Calamba corridor (SLEX and Manila South Road), as
well as to serve as an alternate to the congested section of the National Highway from
Calamba to Los Baos. To provide continuity of the expressway, the original Calamba-Los
Banos Bypass Road under the Business Case Study has been integrated with the BicutanCalamba section to form the seamless expressway from Bicutan to Los Banos, while
providing for access to the major centers along its route though eight interchanges and link
roads viz., Bicutan, Sucat, Muntinlupa, San Pedro, Binan, Sta. Rosa, Cabuyao, and
Calamba.
Furthermore, the proposed expressway will be used to integrate a flood control system to
protect the flood prone areas located along the shoreland of Laguna Lake. The flood control
system consists of the expressway- dike itself, which will serve as a barrier to deter the rising
water of Laguna Lake from flowing onto the shoreland areas and a pumping system that will
maintain the level of water along the shoreland at its lowest and keep it flood free even during
heavy rains and strong typhoons.

1.3.2

Reclamation Component
The proposed reclamation component of the Project is envisaged to enhance the viability of
the expressway-dike component through proceeds that will be generated from the sale of part
of the reclaimed lands. This project component is an amended reclamation proposal which
was previously subjected to detailed feasibility study by then Public Estates Authority (PEA)
and now Philippine Reclamation Authority (PRA).

JF Cancio & Associates

in Assoc. with FDCCE&A, CO.&PROCONSULT ENGINEERS, CO.

1-3

FINAL REPORT

The proposed reclamation component will have 700 hectares coverage from Taguig to
Muntinlupa, intended for residential and commercial use, as indicated by the results of this
feasibility study stage.
1.4

ORGANIZATION OF THE REPORT

The results of the major study items were organized as follows:
Executive Summary
Chapter 1
Introduction
Chapter 2
Socio Economic Study
Chapter 3
Traffic Study
Chapter 4
Technical Due Diligence
Chapter 5
Business Development Options
Chapter 6
Economic Evaluation
Chapter 7
Financial Evaluation
Chapter 8
Environmental Impact Study
Chapter 9
Value for Money (VfM) Analysis
Chapter 10
Institutional and Legal Analysis
Chapter11
Overall Project Evaluations

JF Cancio & Associates

in Assoc. with FDCCE&A, CO.&PROCONSULT ENGINEERS, CO.

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